Social capital and support for the welfare state in Russia

Borisova, Ekaterina; Govorun, Andrei; Ivanov, Denis

doi:10.1080/1060586x.2017.1348588

Cited by 5 publications

(7 citation statements)

References 48 publications

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“…In the paper on the Russian economy, Borisova, Govorun, and Ivanov (2017) prove that generalized trust matters both statistically and economically, suggesting that people living in regions with higher generalized trust prefer redistributive policies of the state.…”

Section: Literature Reviewmentioning

confidence: 98%

“…Rational utility-maximizing voter models imply that under the universal franchise, the median voter's position in the overall income distribution scale dictates the tax rate and, therefore, the share of income to be redistributed. In a society with low inequality, popular support for redistribution would be less than in a highly unequal society (Borisova, Govorun, & Ivanov, 2017).…”

Section: Introductionmentioning

confidence: 99%

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In whom do you trust? Analysing the Role of Social Capital in Reducing Income Inequality-A Panel Data Approach

Rauf

2017

NRJSS

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In this study, we examine if social capital, in the form of trust, networks, and institutions, affects income inequality across countries. We aim to build a narrative, supported by empirics that institutions embedded deeply in the fabric of the society play a critical role in motivating policies towards inclusive growth and distributive initiatives by the state. Policies aimed at distribution are a conscious choice that is driven by the society’s level of trust in each other. Higher levels of trust among citizens leads to cooperative behavior and solves social dilemmas thus reducing free riding problems. Also, high trusting and cooperative citizens are more likely to push governments for reforms and policies that aim at the provision of public goods and increased social spending. Voters’ limited acceptance of morally questionable behavior among politicians restrains rent-seeking problems in politics and encourages good governance. The study uses panel data analysis utilizing data from World Values Surveys. The basic model used for testing the relationship between social capital and income inequality is through the fixed effects models. For developing a meaningful analysis, we distinguish between civil social capital and government social capital. We establish that higher levels of generalized trust (civil social capital) among citizens leads to a reduction in income inequalities. The significance of social capital is reiterated when the variables for government social capital are introduced in the model. Our study establishes that indicators of government social capital, particularly lower corruption levels have a significant impact on reducing income inequality.

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Section: Literature Reviewmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

In whom do you trust? Analysing the Role of Social Capital in Reducing Income Inequality-A Panel Data Approach

Rauf

2017

NRJSS

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“…Some researchers have reported the effects of particular cultural indicators such as responsibility, obedience, respect, and individualism-collectivism dimension (Hofstede, 2001;Hofstede et al, 2010) which impact economic behaviors and institutions over time. Largely, one of the cultural variables most examined in economic analysis to date is trust (Alesina, La Ferrara, 2002;Guiso et al, 2004;Alesina, Angeletos, 2005;Algan, Cahuc, 2010;Algan, Cahuc, 2014;Algan et al, 2016;Borisova et al, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

“…A considerable body of literature on cultural economics has developed in the last couple of decades. Economists have examined the casual relationship between specific cultural aspects (trust, respect, responsibility, obedience, family ties, and individualism-collectivism), institutions, and economic attitudes in various empirical studies (Alesina, La Ferrara, 2002;Guiso et al, 2004;Algan, Cahuc, 2010;Algan, Cahuc, 2014;Borisova et al, 2017). Nonetheless, scholars have not reached a wide consensus on how cultural variables and institutions relate to and evolve in, and influence on economic performance.…”

Section: Introductionmentioning

confidence: 99%

Traditional Values and Institutional Quality

Berk¹,

Madmarov²

2021

Spatial Economics

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Why do similar economic and political institutions function differently in various cultures? This paper tries to identify potentially important factors related to the institutional quality. We investigate the relationship between cultures, cultural dimensions: non-tradition in particular, and formal institutions to explain differences in the quality of institutions around the world. We use a measure of traditional values, structured by Inglehart and Baker, from the World Values Survey, to extend the literature on the determinants of institutions’ quality. We show that differences in traditional values are suggestive to explain differences in the quality of institutions across countries. The OLS method is utilized in order to analyze the factors of institutional quality in sixty countries in 2010–2014. In this study, the OLS models are employed in order to understand the key factors of institutional differences among countries in the period of 2010–2014. The empirical model results show that (i) non-tradition is a reliable significant variable with positive contributions on six institutional quality variables, (ii) urbanization has unexpected negative effects on some institutional quality indicators like rule of law, political stability and voice/accountability. However, it has meaningful contribution to control of corruption in the countries, (iii) economic development have increasing impacts on the majority of the institutional quality variables, (iv) while education has positive effects on government effectiveness, political stability and regulation quality, it has negative unexpected impacts on rule of law and voice/accountability, (v) openness has only effects on corruption and political stability, (vi) there are non-linear relationships between dependent variable(s) and independent variables rather than linear relationships

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“…Historical trust levels have been causally linked to economic growth (Algan and Cahuc ; Bjørnskov ), to better institutional quality and a less regulated economy (Aghion et al ; Bjørnskov ; Knack ; Leibrecht and Pitlik ), and to macroeconomic stability (Sangnier ). At the same time social trust has been causally linked to welfare state size (Algan, Cahuc, and Sangnier ; Bergh and Bjørnskov ) and at the individual level to preferences for higher public spending (Borisova, Govorun, and Ivanov ; Camussi, Mancini, and Tommasino ; Kammas, Kazakis, and Sarantides ).…”

Section: Introductionmentioning

confidence: 99%

Does Big Government Hurt Growth Less in High‐trust Countries?

Bergh

Bjørnskov

2020

Contemporary Economic Policy

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Social trust is linked to both public sector size and to economic growth, thereby helping to explain how some countries combine high taxes with high levels of economic growth. This paper examines if social trust insulates countries against the negative effects of public sector size on growth, documented in several studies. We note that the effect is theoretically ambiguous. In panel data from 66 countries across 40 years, we find no robust evidence of insulation effects: when excluding countries with uncertain trust scores, our results suggest that big government hurts growth also in high‐trust countries, and that the mechanism is by lowering private investments. (JEL H10, O11, P16, Z10)

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Social capital and support for the welfare state in Russia

Cited by 5 publications

References 48 publications

In whom do you trust? Analysing the Role of Social Capital in Reducing Income Inequality-A Panel Data Approach

In whom do you trust? Analysing the Role of Social Capital in Reducing Income Inequality-A Panel Data Approach

Traditional Values and Institutional Quality

Does Big Government Hurt Growth Less in High‐trust Countries?

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